South Korean court declares Hanjin Shipping bankrupt

A South Korean court declared Hanjin Shipping bankrupt on Friday (Feb 17), after ruling earlier this month that the firm's liquidation value would be worth more than its value as a going concern.

Hanjin Shipping, which had been the world's seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support.

About two-thirds of its cargo fleet became marooned at sea, while some of its ships have been seized at various ports worldwide, including one container vessel in Singapore.

The crisis has badly hit the international shipping industry and has rocked the boats of some businesses in Singapore.

The Seoul Central District Court said in a statement it has chosen a bankruptcy administrator, and claims by creditors are due by May 1, 2017. The first meeting of creditors will be held on Jun 1, 2017.

"The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors," it said.

On Feb 2, the court had said it had decided to end the receivership process in favour of a bankruptcy.